Publications

January 22, 2016

Trade And Foreign Direct Investment Nexus In West Africa: Does Export Category Matter?

This paper examines the effect of inward FDI in
West Africa on exports to EU countries. It investigates from a host country
perspective, the impact of FDI on different export categories: primary,
intermediate, and final goods.

Trade and Foreign Direct Investments are the key
divers of economic integration and the globalization process. The widely held
view is that both trade and FDI are beneficial, as the former can stimulate
innovation, productivity, competitiveness, and diversification; and the latter
increases the capital stock, provides new job opportunities, and promotes the
transfer of technology. Thus there have been profound calls within
international organizations for developing countries to encourage both trade
and FDI in order achieve robust economic growth and development. However, critics argue that trade, particularly imports, can
create undue competition and stifle indigenous manufacturing; and inward FDI
can also displace domestic firms. Similarly, from a source country perspective,
outward FDI can lead to loss of jobs as multinationals move job opportunities
overseas

Related

The paper discusses Natural Resource
Control and how it is affected by governance in Nigeria with focus on two
oil-producing states. It also examines sub-national accountability in the use
of natural resource revenues.

African countries have been left out of the recent benefits accruing from international trade. For example, they accounted for only 3.2 percent of world trade in 2013 compared to 5 percent in the mid-1960s. Regional integration can reverse this weak performance as it holds the promise for countries to gain from the resultant economies of scale and enhanced competitiveness. It will also help to expand the markets for foreign direct investment.

Recently
released GDP figures reveals that the three major sectors recorded positive and
negative growth rates individually in 2017Q2. Firstly, Agricultural
sector grew Year on Year by 3.01 percent, down from 3.39 percent in 2017Q1- driven by
weaker output in crop production and Fishing sub-sectors. This is not
unconnected with the planting season and the shortage of grainsfor livestock/fish respectively.